Saudi’s MEPCO says new plant cost increased to $97.44mln amid delays

Saudi’s MEPCO says new plant cost increased to $97.44mln amid delays

Saudi Arabia’s Middle East Paper Company (MEPCO) said the investment cost of its tissue paper and hygienic paper jumbo rolls production plant has increased to 365.5 million Saudi riyals ($97.44 million) from SAR 338 million on rising shipping costs and higher global material prices.

Juthor Paper Manufacturing Company project, which is 85 percent complete, will begin trial operations in the second quarter of 2023, followed by commercial operations, the company said in a statement to the Saudi stock exchange.

The company said that the launch date was postponed amid delays in equipment delivery driven by global logistics challenges and the pandemic.

In December 2020, MEPCO had stated that it expected the trial run and commercial operations to take place in the first quarter of 2023.

(Writing by P Deol; Editing by Anoop Menon)

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